Almost half of renters in America are paying rents considered ‘unaffordable’. 20.7M out of 42.4M renters are paying at least 30% of their income as rent, and 11.2M are paying more than 50% of their income as rent. The situation is worsening because rents are going up faster than inflation and, while wages are rising slightly overall, wages for renters are down ~11% since 2001. Many renters rent because they aren’t making enough to buy, which means they are already in lower paying jobs, which means the percentage they pay towards rent will continue to rise.
“About 28% of renters earn less than US$20,000 a year. At that income, monthly housing costs have to be $500 or less to be affordable.” – US Conversation
As income inequality increases, the story become worse, especially for renters who also have to pay for child care which has a similar economic dynamic. Renters may be an important way to track America’s economy.
(Click on the chart for the link.)